Buying a Residential Property with a Poor Credit History

Buying a Residential Property with a Poor Credit History

Client’s Situation

Our client was born in Italy but has been a resident and employee in the UK for a number of years. He was in his early 50s with no dependent children ( he had a grown-up daughter in Italy from a previous marriage ) and was living with friends. His income was moderate.

He wished to purchase a property and discovered a work colleague was selling a two bedroom flat for £95,000 which he agreed to purchase.

Our client had a large deposit available (equivalent of £40,000 sterling) held in Euros in a savings account in Italy.

The Problem

A couple of years ago our client sadly had to return to Italy following the death of his father to sort out his financial affairs.

At that time the client had a small personal loan and small balances outstanding on a couple of credit cards with his bank in the UK. These payments were always made on time.

Our client left funds in his UK bank account to cover the monthly loan and credit card payments but, due to unforeseen delays in Italy regarding his late father’s estate, he returned to the UK many months later than anticipated and had miscalculated the funds left in his account which led to him missing several payments.

This led to his UK bank placing three defaults against our client’s name. On his return to the UK our client immediately repaid the monies owing in full but the damage had been done as these defaults (although satisfied) showed on his credit file.

The Solution

After researching the market we found a lender willing to accept our clients’ 3 defaults and to lend the full mortgage amount required which meant our client could purchase the property.

The lender required confirmation of the deposit which we were able to do by producing the bank statements from his Italian bank which showed the Euros being converted to Sterling and his UK bank account showing receipt of these funds.

We also had to confirm to the lender that the property was being purchased at full market value since the sale was not going through an Estate Agent and was therefore classed as a ‘private sale’.

Conclusion

Our client is now the proud owner of a 2 bed flat in Manchester.

Summary

Manchester Mortgages is a trading name of Mortgages 4U (North West ) Limited which is authorised and regulated by the Financial Conduct Authority (FCA register number 301076). Registered in England & Wales No. 4729252. Registered office: 7 Randale Drive, Bury, BL9 8HZ.Your home or property may be repossessed if you do not keep up repayments on your mortgage.

Customer Reviews

I can not recommend Manchester Mortgages enough, from our very first mortgage to our remortgage everything was done so efficiently. No question was a stupid question for Andy he explained everything we needed and constantly kept us updated through out both processes. Literally helped us so much. Thank you again Ash & Jessread more

We dealt with Alan Dee at Manchester Mortgages and I am glad we chose to go with this mortgage broker. I wasn't expecting everything to happen so so fast, which it did. Alan processed everything quickly and efficiently, and he always kept us up to date in regards to what stage we were at with the mortgage process. I'm not thinking of getting a mortgage after this in the future, but if I was to, I would definitely be going back to Manchester Mortgages. Thank you very much for your brilliant service, Alan!read more

Cannot recommend Andrew Butterworth enough. He helped us every step of the way and answered all our questions no matter how silly we thought they were. Would not hesitate to recommend them to anyone. Thank you Andrew for everything.

Manchester Mortgages have been great we didnt think we would get a mortgage but Andrew helped us to achieve this. Andrew as been great all the way through the process and has even helped sort out our life insurance and building and contents insurance. Nothing is too much trouble for him. Would definitely recommend this company.read more

Alan has made the impossible possible for paul and I. We had contacted several mortgage brokers to no avail until Alan was recommended to us. We are so glad we asked for his expertise and services because we are due to complete on the house of our dreams in 4 weeks time with a mortgage offer for much more than we ever thought possible. Thank you so much Alan we will be recommending you to anyone and everyone. Paul and Jordanread more

I was recommended Alan Dee at Mortgages 4U by a friend. He was really quick every time I contacted him to answer. I took my time ot think about things and he wasn't at all pushy, just allowed everything to work in my time and was quick when I was ready to move forward. There was no hassle with getting it sorted - he pretty much sorted everything for me. I'd certainly recommend him to others. Thanks!read more

I dealt with Andrew from Manchester Mortgages. As a First time buyer, I didn't have a clue about mortgages. Andrew was extremely knowledgeable, speedy and efficient. Nothing was too much of an ask. He made the mortgage process an easy one! I now have a mortgage in place thanks to Andrew. I am so happy I decided to use Manchester Mortgages and I would recommend them to anyone!read more